Business Process & Data Analysis on Peloton

Interactive Inc.

Derek Osawaguan Ahamioje

 

Table of Contents 
 
PART 1: BUSINESS PROCESS ANALYSIS 
INTRODUCTION ............................................................................................................................................ 3 
 .................................................................................................................................................................. 3 
1 Background of Peloton ....................................................................................................................... 3 
2 Strategic Goals .................................................................................................................................... 3 
3 Business Model................................................................................................................................... 4 
STRATEGIC ANALYSIS ........................................................................................................................... 7 
1 STRENGTHS ......................................................................................................................................... 7 
2 WEAKNESSES ...................................................................................................................................... 8 
3 OPPORTUNITIES ................................................................................................................................. 9 
4 THREATS ........................................................................................................................................... 10 
 INVESTIGATING SITUATION: PRIOR RESEARCH ................................................................................. 12 
STAKEHOLDERS ANALYSIS .................................................................................................................. 14 
NEEDS ANALYSIS ................................................................................................................................. 16 
BUSINESS PROCESS MODELLING ....................................................................................................... 18 
DEFINING SOLUTION .......................................................................................................................... 20 
COMMENTS, OBSERVATIONS AND RECOMMENDATIONS ............................................................... 22 
1  Comments and Observations ..................................................................................................... 22 
2  Recommendations ..................................................................................................................... 22 
INTRODUCTION .......................................................................................................................................... 23 
Research Questions ................................................................................................................................ 23 
BUSINESS INSIGHT .............................................................................................................................. 24 
1  Total output ................................................................................................................................ 24 
2  Live – On Demand Performance review. ................................................................................... 27 
3  Impact of Instructors and Fitness Discipline ............................................................................. 29 
4  Impact of workout dates and times .......................................................................................... 30 
Comments, Observations and Recommendations ............................................................................ 33 
1  Comments, Observations ........................................................................................................... 33 
2  Recommendations ..................................................................................................................... 33 
CONCLUSIONS ................................................................................................................................ 34 
REFERENCE .................................................................................................................................................. 35 
 
 

 
2 
Table of Figures 
 
FIGURE  1INCOME  STATEMENT  OF  PELOTON  FROM  2020  TO  2022  (SOURCE:  PELOTON 
INTERACTIVE, 2023) .................................................................................................... 5 
FIGURE 2: CASH FLOW FROM 2020 TO 2022 ........................................................................ 6 
FIGURE 3: SWOT ANALYSIS OF PELOTON .......................................................................... 11 
FIGURE 4: POWER INTEREST GRID OF STAKEHOLDERS ........................................................ 15 
FIGURE 5: PELOTON SUBSCRIBER GROWTH EBBS (RICHTER, 2022) .................................... 17 
FIGURE 6: THE PELOTON BUSINESS MODEL (SOURCE: PEREIRA, (2023))............................. 19 
FIGURE 7: PROPOSED BUSINESS CANVAS MODEL ............................................................... 21 
FIGURE 8: SHOWING THE TOTAL OUTPUT, CALORIE BURNED AND WORKOUT FOR THREE YEARS.
 ................................................................................................................................ 24 
FIGURE 9: TOTAL OUTPUT SPREAD PER PERIOD .................................................................. 24 
FIGURE 10: HEATMAP AND REGRESSION GRAPH ................................................................. 25 
FIGURE 11: TOTAL OUTPUT FIRST KEY INFLUENCER ............................................................ 26 
FIGURE 12: TOTAL OUTPUT SECOND KEY INFLUENCER ........................................................ 26 
FIGURE 13: TOTAL OUTPUT THIRD KEY INFLUENCER ........................................................... 26 
FIGURE 14: TOTAL OUTPUT AND CALORIES BURNED BY LIVE ON-DEMAND .......................... 27 
FIGURE 15: LIVE ON-DEMAND INFLUENCER 1 ..................................................................... 28 
FIGURE 16: LIVE ON-DEMAND INFLUENCER 2 ..................................................................... 28 
FIGURE 17: LIVE ON-DEMAND INFLUENCER 3 ..................................................................... 28 
FIGURE 18: INSTRUCTORS RATING PER TOTAL OUTPUT ....................................................... 29 
FIGURE 19: CALORIES BURNED PER FITNESS DISCIPLINE .................................................... 30 
FIGURE 20: TOTAL OUTPUT PER WORKOUT DAY OF THE WEEK ............................................. 31 
FIGURE 21: CALORIES BURNED PER WORKOUT DAY OF THE WEEK ........................................ 31 
FIGURE 22: TOTAL WORKOUT BY WORKOUT TIME ................................................................ 32 
 
   

PART 1: BUSINESS PROCESS ANALYSIS

INTRODUCTION

0.1 Background of Peloton

Peloton, an American hardware development company, is a leader in fitness innovation,

offering comprehensive, instructor-led workouts at home. Founded in 2012 by CEO John

Foley, the company has evolved into a leading fitness brand, offering unlimited live-on-

demand sessions. With over 5.9 million subscribers as of June 2021, Peloton stands out

from other at-home fitness brands. Investors have invested around $994 million in the

company, focusing on product innovation and live training. The company employs over

2,000 people, including the CEO, CFO, and COO, and has a board of advisors, legal

operations, commerce, diversity, public policy, and directors. Peloton's global

communications staff handle messaging to investors and customer relations

stakeholders. The company's success is attributed to its interactive software, powerful

instructors, and vibrant community.

0.2 Strategic Goals

The Peloton interactive has as its mission statement, to inspire individuals to be the

greatest versions of themselves wherever they are at any time, using technology and

design to connect the globe via fitness (“PELOTON 2021 ESG REPORT,” 2021), by

providing individuals with intense exercise in immersive, easily accessible, reasonably

priced, and effective methods. However, in McDon, D., & Nankya, Y. (2021) the following

deductions can be made on the strategic plans of Peloton interactive.

I. To consistently add new subscribers.

II. To provide interactive elements that improve ties within the community.

III. To provide the greatest fitness material available.

IV. Creating novel items and modernising existing ones to meet industry requirements.

V. And to increase the company's market share and geographic reach.

0.3 Business Model

Peloton is a fitness brand that caters to celebrities, tech-savvy people, and middle-class

to upper-class fitness fanatics. The company provides social features, convenience,

improved customer experience, instructor-led exercises, and interactive sessions. Its

business model is capture in key segments such as

Value propositions, Channels, Customer segments, Revenue streams, Key activities, Key

partners, and cost structure.

Peloton is a fitness brand that offers a sense of belonging, improved customer

experience, and more successful workouts. It operates through physical studios,

websites, apps, social media, and customer connections. Peloton's revenue streams

include sales of technology, clothing, accessories, and fitness equipment, as well as

monthly membership plans. Key resources include fitness instructors, personnel, media

partnerships, equipment, manufacturing alliances, and infrastructure. The brand's main

activities include product development, research and development, manufacturing,

delivery, marketing, branding, content production, sales, customer support, fitness

courses, celebrity classes, and unique events. Peloton's cost structure includes staff and

instructor salaries, administrative expenses, physical infrastructure maintenance,

branding, marketing, and shipping.

The manufacturer of fitness subscriptions and high-end exercise announce 500 jobs

losses lost as part of its fourth round of layoffs in 2021. The layoffs were a part of a

broader reorganisation that also involves outsourcing manufacturing, 50% less member

services, and contracting out last-mile deliveries to third parties. In Q3 2021, Peloton's

revenue dropped by around 30% while net membership increases were almost non-

existent. Figures 1 and 2, respectively, display the cash flow and the income statement

(Peloton Interactive, Inc. (PTON)., 2023).

Figure 1Income statement of Peloton from 2020 to 2022 (Source: Peloton Interactive, 2023)

Figure 2: Cash flow from 2020 to 2022

1 STRATEGIC ANALYSIS

Based on the strategic plans earlier mentioned, analysing the current state of Peloton will

provide a vivid picture of the health of the organisations and the area where improvement

is required. Among the several methods for assessing the strategic analysis of an

organisation, the SWOT analysis has shown to cover both the external and internal

factors. Figure 4 is a summary of SWOT analysis of Peloton.

SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis

1.1 STRENGTHS

i. One stop product ecosystem: The company that offers a comprehensive

product ecosystem, such as the cutting-edge Peloton Bike and Tread, which

are premium exercise equipment.

ii. Innovative User-inclined Technology: The company is known for its

innovation and user-centric technology, investing in research and

development, and utilizing advanced software and data analytics for

personalized recommendations.

iii. Brand Identity: Peloton's brand identity and community engagement are key

strengths, promoting connected fitness, empowerment, and community

through virtual classes, social media, live leaderboard rankings, and virtual

high-fives.

iv. Talented team of instructors: Peloton's diverse team of world-class fitness

experts and celebrity instructors, combined with a strong social media

presence, provides a well-rounded fitness experience.

v. Subscription-based revenue model: Peloton's financial success is attributed

to its stable revenue stream, predictable business model, and high customer

retention rate, bolstering its competitive position and sustainable growth.

vi. Aggressive marketing and strategic partnerships: The company has

successfully established its brand through a multichannel marketing approach

that makes use of influencer relationships, internet advertising, social media,

luxury hotels, and wellness initiatives.

vii. Diversification: Another asset of Peloton has been its aggressive plan for

worldwide development, which has helped the business diversify its sources of

income and reduce the dangers involved with depending too much on any one

market. Complementary products have been launched by the firm, like Peloton

App, which enables customers to access the digital platform without having to

purchase Peloton equipment.

1.2 WEAKNESSES

The fitness equipment company faces several weaknesses, including.

i. High initial costs

ii. Limited market penetration initiated by pricing strategy.

iii. Heavy dependence on subscription revenue,

iv. Product reliability and safety concerns,

v. Heavy reliance on instructor personalities,

vi. Limited physical presence, and

vii. Evolving market landscape.

The high initial cost of Peloton's premium products, such as the Peloton Bike, Tread, and

Bike+, reduces their availability to customers on a tight budget. This pricing approach

may also prevent a wider range of consumers from entering the market, such as price-

conscious buyers and those who favour less expensive options.

Peloton's subscription-based revenue model is susceptible to changes in client retention

rates and recessions, making it vulnerable to decreased subscription renewals. Peloton

must diversify its revenue sources and look at non-subscription revenue streams to

reduce this risk.

The restricted range of cardio-focused workouts offered by Peloton may put off

prospective consumers looking for a more varied training experience. Industry rivals with

more varied fitness offerings include boutique fitness studios and conventional gyms.

Product reliability and safety concerns have led to product recalls (Schultz, 2021a) and

negative publicity, undermining customer confidence and harming Peloton's brand. To

continue to preserve its reputation and protect its market position, Peloton must

guarantee the safety and dependability of its products.

Lastly, boutique studios, conventional fitness centres, and newcomers to the virtual

fitness market compete with Peloton. Peloton must constantly develop and adjust to

changing market conditions, changing consumer preferences, and remaining flexible and

responsive.

1.3 OPPORTUNITIES

As a fitness company, Peloton has several opportunities to capitalize on as the fitness

landscape evolves.

i. Market Expansion and Penetration: It can expand its global presence by

going after unexplored areas of Asia, Europe, and other continents, and

customising its products to fit a wide range of global consumers.

ii. Tactical Alliances: Gyms, celebrities, and local fitness influencers may help

expand brand recognition and market penetration into new areas.

iii. Diversification and innovations: Peloton can expand its fitness equipment

range by introducing rowing machines, ellipticals, and strength training

equipment, and explore wearable fitness technology for seamless integration

with its digital platform.

iv. Expanding Digital Content Library: Expanding the digital content library of

workout classes, incorporating wellness and mindfulness content, and offering

new disciplines and difficulty levels can enhance customer engagement and

loyalty.

v. Special Events: Live events like Peloton-branded fitness festivals and

wellness retreats can strengthen community and brand loyalty, while exclusive

experiences and retention incentives can enhance Peloton membership value.

vi. Leveraging Data Analytics: By analysing user behaviour and workout

performance, Peloton can improve its capabilities, improving contentment,

rates of retention, and a competitive advantage in the fitness industry.

1.4 THREATS

Peloton, a fitness company, faces several challenges in the market due to evolving

consumer preferences and intensifying competition.

i. Intense Competition: The fitness market faces intense competition from

established brands and startups, with traditional clubs and boutique studios

entering the digital space, potentially leading to pricing pressures and

increased costs.

ii. Evolving consumer preferences: Peloton must adapt to evolving consumer

preferences and trends to stay relevant and appealing, as failure to do so could

result in reduced customer engagement and potential competitor defection.

iii. Regulatory Challenges: Peloton faces regulatory challenges in multiple areas

worldwide, including complex and costly adherence to regional regulations

concerning consumer protection, product safety, data privacy, and intellectual

property.

iv. Supply chain disruptions and manufacturing challenges: can impact the

timely delivery of products and affect Peloton's brand reputation.

v. Technology dangers and reliance on electronic infrastructure: can also

pose challenges. Cyber-attacks, data breaches, and system outages can lead

to legal consequences, undermine consumer trust, and jeopardise user

information.

vi. Economic downturns and consumer spending habits: potentially affect

Peloton's attempts to attract new customers and maintain their loyalty levels.

vii. Social media backlash and bad press may spread swiftly and have serious

repercussions for companies. Peloton must respond to such incidents and

address customer concerns to manage and mitigate these threats.

PELOTON INTERACTIVE SWOT ANALYSIS

STRENGTH:

WEAKNESS:

→ One stop product ecosystem

→ Innovative User-inclined Technology

→ Brand Identity

→ Talented team of instructors

→ Subscription-based revenue model

→ Aggressive marketing and strategic

partnership

→ Diversification

→ High initial costs

→ Limited market penetration initiated

by pricing strategy.

→ Heavy dependence on subscription

revenue,

→ Product reliability and safety

concerns,

→ Heavy reliance on instructor

personalities,

→ Limited physical presence, and

→ Evolving market landscape

OPPORTUNITIES

THREATS

→ Market Expansion and Penetration

→ Diversification of Product Offerings

→ Expanding Digital Content Library

→ Strategic Partnerships

→ Special Events

→ Leveraging Data Analytics

→ Intensifying Competition

→ Evolving Consumer Preferences and

Trends

→ Regulatory and Legal Challenges

→ 4. Supply Chain Disruptions and

Manufacturing Challenges

→ 5. Dependency on Digital

Infrastructure and Technological

Risks

→ 6. Economic Downturns and

Consumer Spending Habits

→ 7. Negative Publicity and Social

Media Backlash

Figure 3: SWOT analysis of Peloton

2. INVESTIGATING SITUATION: PRIOR RESEARCH

As a way of investigating the situation at Peloton, the suitable method adopted was

the prior research available on Pereira, (2023), considering the daunting task of

other approaches. The Business model captures nine key segments that defines

the Peloton interactive.

2.1 Customer Segments

The customer base of the organization is made up of

• Fitness enthusiasts: Targeting 60% of their customer demographic aged

24-44, with only 2% over 65.

• Well-known people and other prominent figures in society.

• Tech-savvy individuals.

2.2 Value Propositions

Which aimed at customers satisfaction creates.

• Instructor-led Workout experience

• Interactive and entertaining Workout Session

• Enhanced Customer Experience

• Convenience-based workout

2.3 Channels: Website, App, social media, Real studios, and showrooms,

2.4 Customer relations: content promotion, social media advertising, independent

service, and fitness club

2.5 Revenue Streams: Sales of clothing, accessories, technology, and exercise

gear plans for monthly subscriptions

2.6 Key Resources

• Personal trainers

• Personnel

• Media partnerships

• Equipment

• Facilities and studios

• Digital content

• Application

• Online visibility

2.7 Key Activities:

Fitness instruction courses; celebrity classes; manufacturing; delivery; marketing,

branding, and content production; sales; customer support; fitness instruction

classes; unique events

2.8 Key Partners

• Instructors

• Manufacturing and logistic companies

• Record labels

2.9 Cost Structure: Payroll and teacher expenses; administrative and running

expenditures; maintaining physical infrastructure; branding and

marketing; shipping.

2.1 Competitors

• Life Fitness: Manufacturer and distributor of fitness equipment with a focus

on treadmills and stationary bikes.

• SoulCycle: Equinox Group-owned fitness brand that offers indoor cycling

and spinning sessions.

• NordicTrack: is a fitness equipment manufacturer that produces ellipticals,

exercise bikes, treadmills, strength training equipment, and other fitness

accessories.

• Bowflex: a Vancouver-based manufacturer of exercise equipment.

3 STAKEHOLDERS ANALYSIS

The stakeholder’s analysis for Peloton interactive plc was performed by plotting or

categorising the stakeholders across the four quadrants of who to monitor, actively

engage, Keep Informed, and Keep Satisfied suing the Power/Interest grid. See figure

i. High Power - High Interest: The decision-makers among stakeholders are

categorised here as those whose influence on the activity is so significant that

their expectations determine its continued existence.

ii. High Power - Low Interest: These categories of stakeholders are not too keen

on the activities as much as they on the output but have a considerable

influence over its implementation. Such stakeholders must be kept satisfied.

iii. Low Power – High Interest: these categories of stakeholders need to

be informed regularly and properly, to avoid severe difficulties, as their impact

can go a long way to influence the activity negatively

iv. Low Power - Low Interest: this category consists of entities that must be

watched on a regular basis and must be avoided by excessive communication.

High

KEEP SATISFIED

MANAGE CLOSELY

Cloud service providers

Shareholders

Manufacturers

CEO

Logistic Companies

Music Label

Low

MONITOR

KEEP INFORMED

Staff members (Instructors)

Investors and Partners

Customers

Low

High

Figure 4: Power interest grid of stakeholders

Interest

Power

4 NEEDS ANALYSIS

The needs analysis will be performed in the following phases.

A. Understanding the short- and long-term goals

The strategic objectives as highlighted earlier is.

I. To consistently add new subscribers.

II. To provide interactive elements that improve ties within the community.

III. To provide the greatest fitness material available.

IV. Creating novel items and modernising existing ones to meet industry

requirements.

V. And to increase the company's market share and geographic reach.

B. Identifying the desired performance effort

From the strategic objective, Peloton expects to grow her subscription

continuously and to expand the company’s geographical spread.

C. Examining the current performance

• Peloton's revenue declined by 30% in Q3 2021 (Quarterly Results, 2021)

• Net subscriber additions dropping to near zero losing 3 million connected

fitness subscription as seen in figure 2.

• The company’s market capitalization has dropped from almost $50 billion to

$3.0 billion.

Figure 5: Peloton Subscriber Growth Ebbs (Richter, 2022)

5 BUSINESS PROCESS MODELLING

Having the understanding that the current performance is short of the expected goal

with drop in earnings, membership subscription and market capitalization, a view of

the company’s business model will throw light into the processes involved. To do this,

Peloton business model canvas will be sued to x-ray the key actors, activities, and

their interactions with one another. Figure 6 below is the Peloton Business canvas.

Figure 6: The Peloton Business model (Source: Pereira, (2023)).

6 DEFINING SOLUTION

The customer subscription drop post pandemic could be explained from the customers

lifestyle change after the pandemic. Recall that during the pandemic so many activities

were reduced due to the lockdown. This activity became a priority activity; however, it

was different post pandemic, and this will affect the financial commitment of subscribers

as well. To restore this growth, a few changes are being introduced in this proposed model

for Peloton as shown in Figure 7.

The model introduces changes to key segments like customer segment, value

proposition, partners and all three will in turn affect the revenue segments.

Value Proposition: In its policy marketing drive, we are introducing additional benefits

that subscribers will benefit from, which are.

i. Promoting an all year- and all-round total wellness lifestyle, through

advertisement, counselling, seminars, and conferences

ii. Wearable devices will make it easier for the now mobile subscribers

to incorporate fitness activities into their upwardly mobile lifestyle.

iii. Incorporate the option to choose an instructor.

Customer segment: The customer segment will expand further from just the middle -

high end earners, celebrities, and tech savvy customers to also include community of

people looking now for total wellness irrespective of their class.

Revenue Stream: From the new introductions, the organization will add at least two

streams of income.

i. Sales of wearable devices.

ii. Free registrations after purchasing a wearable device.

Partnership: Partnership with hotels and clubs will help to open-up more service outlets

and ad earnings from both equipment sales and subscriptions

Figure 7: Proposed Business canvas model

7 COMMENTS, OBSERVATIONS AND RECOMMENDATIONS

7.1 Comments and Observations

Peloton’s target audience as it is shown from its business model indicates that it is

towards fitness enthusiast and mid – high income earners. However, a careful

observation shows that the entry level power bike price is $2,495, which indicates that

the actual target audience is the high-income households, considering this excessive

cost of owning a peloton. What this has done is to restrict a larger number of

populations that would wish to own a peloton from owning one. Second, being a major

beneficiary from the covid 19 lockdown, Peloton’s responds to the demand surge were

way above the demand with the investment of $420 billion in the purchase of the

fitness machine making company – Precor, shortly before the lockdown was eased.

This resulted to having more equipment, than the market demand for it.

7.2 Recommendations

The following measures can address the inadequacies so identified and more.

1. There needs to be a pricing review that will accommodate more people. The

shortfall in profits from sales can be shifted to fee for personalized fitness

instructors and subscriptions from other partnering organizations like hotel and

clubs.

2. Subsequently, it is recommended that a careful study of the demand stability

be carried out before making serious investments to address the demands.

PART 2: BUSINESS DATA ANALYSIS

INTRODUCTION

In this session of this assessment the data analysis of a business data is carried out,

either from same company being investigated in Part one of the report or a tutor-

approved dataset chosen from a list. In this part of my study, business data from same

company, which in this case is Peloton Interactive Inc., has being used. The dataset

which has been retrieved from Kaggle is accessible with the link: CStevens Peloton

Data (kaggle.com). The data is comprised of 21 attributes (columns) and 3737 rows.

These attributes of the datasets are, 'Workout_ID', 'Workout_Timestamp',

'Workout_Date', 'Workout_Day', 'Workout_Time', 'Live_OnDemand',

'Instructor_Name', 'Co_Instructor', 'Length', 'Fitness_Discipline', 'Type', 'Total_Output',

'Avg_Watts', 'Avg_Resistance', 'Avg_Cadence', 'Avg_Speed', 'Distance',

'Calories_Burned', 'Avg_Heartrate', 'Avg_Incline', and 'Avg_Pace'.

This report covers introduction, Research questions, Business insight, Comments,

observations, and recommendations, and conclusions.

Research Questions

To get the analysis, the following research questions have been identified.

i. Which activity contributes most to the total output?

ii. What are the key influences of total output?

iii. What are the key influencers of live-OnDemand?

iv. Is there any significant difference between calories burned

and the fitness discipline?

v. In what day of the week is the highest total output?

vi. Which instructor has the highest output?

vii. Are the instructors performing uniformly across board?

viii. What is the total output and total calories burned by live-

demand?

ix. What is the daily workout peak period?

8 BUSINESS INSIGHT

The analysis performed on the data set to gain insight was conducted using Power BI

and python tools for both statistical analysis and visualization.

8.1 Total output

For the three-year period covered in the dataset, the total output is 153,099 while the

total calorie burned is 402,740 (Figure 8).

Figure 8: Showing the total output, calorie burned and workout for three years.

Further investigations shows that the year 2022 had a higher concentration of outputs

when compared to 2021 and 2023 (Figure 9), suggesting that more workouts had

occurred in this period above 2021, 2023, while it was lowest in 2020.

Figure 9: total output spread per period

The contributing parameters to the total output can further be assessed to give an

insight into the activities that have contributed the most to the total output recorded

within these periods. The heatmap shown in Figure 10 shows that there is a

remarkably high correlation between Calories burned and Total output, and between

Distance covered and total output. The collinearity chart further highlights that the

output and calories burned are positively interdependent such that while calories

burned increases, the total output also increases correspondingly.

Figure 10: Heatmap and regression graph

Other factors that could predict increase in the total output were analysed. These

influencers were categorized in the order in which they could increase the total output,

Below the top three categories that will predict an increase total output as shown in

figure 11, 12 and 13.

1. Total output is likely to increase when the type is Hiking, as Hiking has

contributed a total output of 272.4 higher than any other values of type.

2. When it is walk and run, the total out is 226.4 higher than otherwise.

3. When the instructor’s name is Kirsten Ferguson, the total output is 197 higher

than others and it is likely to increase.

Figure 11: Total Output first key influencer

Figure 12: Total Output second key influencer

Figure 13: Total Output third key influencer

8.2 Live – On Demand Performance review.

Live – On demand are two options available to customers in terms of location of their

exercise. While ‘Live’ is the physical appearance at the gym site, the on-demand use

of the Peloton services through their high-tech equipment’s and apps from the user’s

comfort base. Comparing their impact on total output and calories burned, the on

demand has higher values than the live. Which suggests that most customers find it

easier to exercise by owning their Peloton equipment. Obviously, more calories were

burned from the On-demand exercise with highest result arising from Cycling, Walking

Running fitness discipline respectively (Figure 14). This comparison is restricted to

exercises that are done in both locations because there are others that can only be

done Live, that is why analysis of the key influencers (Figure 15, 16 and 7) indicates

that.

i. As calories burned decreases, the likelihood of live on-demand being On-

demand increases (2.16times).

ii. When the instructor is Andy Speer the live on-demand is 1.16 times going

to be On-demand.

iii. When the output is 6-61 it is likely going to be On-demand

Figure 14: Total Output and Calories Burned by Live On-demand

Figure 15: Live On-demand influencer 1

Figure 16: Live On-demand influencer 2

Figure 17: Live On-demand influencer 3

8.3 Impact of Instructors and Fitness Discipline

Peloton boast of celebrity instructors and prior analysis has indicated its influence on

the total output. A look at the various contributions of the instructors can be seen in

Figure 18 with Kirsten Ferguson having the highest total output, affirming while Kirsten

is the 3

key influencer of total output. On the fitness discipline Strength, Cycling and

walking burned the highest calories of 28.9%, 25.38% and 23.31% respectively

(Figure 19).

Figure 18: Instructors rating per total output

Figure 19: Calories Burned per Fitness Discipline

8.4 Impact of workout dates and times

The knowledge of the most active periods is essential for planning and resource

allocation. This is done by reviewing amounts of calories burned and total output per

day of the week. Whereas figure 20 shows Sunday has the highest Total Output, figure

21 also affirm that more calories were burned on Sunday. Furthermore, pick workout

times of the day are between the hours of 7am – 10am in the morning and 6-7pm in

the evening (Figure 22).

Figure 20: Total Output per workout day of the week

Figure 21: Calories burned per workout day of the week

Figure 22: Total workout by workout time

9 Comments, Observations and Recommendations

9.1 Comments, Observations

From the insights gained and noted above, calories burned contributes most to the

total output as a single activity, however other key influencers were identified,

which are either single or a combination of activities. Same applied to the options

between Live or on-demand, however, on demand recorded the most patronage

resulting in high total output and calories burned. Obviously, there were identified

differences among fitness discipline in terms of number of calories burned.

Instructor performances were also not uniform, Kirsten Ferguson being the most

productive. Finally, Sunday happened to be the most productive day of the week.

9.2 Recommendations

After the analysis and insight gained, the following recommendations are made.

i. Create a marketing option for customers to choose from the top 5

instructors for a fee to generate extra revenue.

ii. Deploy more resources to type hiking, walking, and running and prominent

instructors since they are key influencers of total output.

10 CONCLUSIONS

The analysis of Peloton datasets guided by 9 research questions has thrown insight

into the performance of Peloton from 2020 to 2023, identifying key areas of strength

which can further be harnessed for further growth.

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Concerns. Available at: https://seekingalpha.com/article/4426980-peloton-

stock-a-unique-buying-opportunity-amid-treadmill-safety-

concerns?utm_source=simplywall.st&utm_medium=referral.

Appendix

Power BI link:

https://app.powerbi.com/groups/me/reports/ae711e1c-0cca-4317-9593-

67652533a06b?redirectedFromSignup=1&ScenarioId=Signup&redirectedWait

Simple=1&experience=power-bi